EQS-News / 21/10/2019 / 07:00 UTC+8 CGS CIMB published its latest report on Union Medical Healthcare (2138.HK [1]). CIMB maintained "Add" with a target price of HK$8.14, based on 20x CY20F P/E. CIMB expects that UMH likely achieved outstanding revenue growth in 1HFY20F despite the social unrest in Hong Kong since July this year. UMH has increased client engagement and promotional campaigns. Below please see the highlights for your perusal. *The group expects revenue to be HK$1bn in 1HFY20F* ? recorded total positive revenue growth in Aug and in Sep 19 ? The Group achieved at least 50% revenue growth in the medical services segment. ? UMH's revenue fell yoy during the National Day Golden Week holiday from 1 Oct to 10 Oct 2019 due to a decrease in mainland visitor arrivals and business disruption during Golden Week due to the closure of shopping malls, arcades and office buildings where UMH's clinics and medical centres are located. *Improving client engagement and promotions to drive business* ? CIMB believes its business for local customers was relatively stable. ? On the back of decreasing consumer consumption appetite, UMH is proactively offering more promotions for local loyalty customers and increasing client engagement to boost its aesthetics and beauty services. ? Meanwhile, the group is also offering promotions for its existing customers in China to drive demand growth in medical services. ? CIMB believes these campaigns can help it maintain stable revenue growth of 10-15% yoy in 2HFY20F 21/10/2019 Dissemination of a Financial Press Release, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=2560b60e13ab5ba95f1cb064680d73e8&application_id=892485&site_id=vwd&application_name=news
(END) Dow Jones Newswires
October 20, 2019 19:00 ET (23:00 GMT)
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